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Bank Earnings:Historical Results/2023 Q1: Difference between revisions
Bank Earnings:Historical Results/2023 Q1 (view source)
Revision as of 19:11, 19 April 2023
, 19 April 2023→Summary
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== Summary == | == Summary == | ||
The six major US banks toppped revenue estimates provided by analysts. Similarly, all of them except Goldman Sachs saw their earnings come above analysts estimates. This indicates that the health of the banking sector is still strong. However, the banks saw their average consumer debt write offs rise by 72% year-on-year to $3.97 billion. Also, their average provisions for credit losses rose by 280% year-on-year to around $6.8 billion. But the banks heads were adamant to point out that a credit crisis is on the offing. | The six major US banks toppped revenue estimates provided by analysts. Similarly, all of them except Goldman Sachs saw their earnings come above analysts estimates. This indicates that the health of the banking sector is still strong. However, the banks saw their average consumer debt write offs rise by 72% year-on-year to $3.97 billion. Also, their average provisions for credit losses rose by 280% year-on-year to around $6.8 billion<ref>Analysis: https://docs.google.com/spreadsheets/d/1CG5B_Xgz2iJM_fkhtgi3Ob9xRXgwpjEv8lX16QlaMi4/edit#gid=0</ref>. But the banks heads were adamant to point out that a credit crisis is on the offing. | ||
Despite being large banks, they were not immune to recent banking turmoil as their deposits fell by an average of 4% year-on-year during the quarter. However, credit tightening was not observed during the period as loans grew by an average of 5%. However, the bank heads did not brush off the possibility of credit tightening in the near future. | Despite being large banks, they were not immune to recent banking turmoil as their deposits fell by an average of 4% year-on-year during the quarter. However, credit tightening was not observed during the period as loans grew by an average of 5%. However, the bank heads did not brush off the possibility of credit tightening in the near future. | ||